Gold rate slips on profit-booking

NEW DELHI: Gold and silver saw profit booking on Friday as traders exited bullion counters at high level amid sharp rise in the Covid-19 cases and gloomy economic projections.

Total number of Covid patients in India reached close to 3 lakh while fatalities climbed to near 8,500 levels. The numbers could also increase faster as India has eased restrictions in the most parts.

Gold futures were down 0.72 per cent or Rs 342 at Rs 47,072 per 10 grams. Silver futures dropped 1.55 per cent or Rs 752 to Rs 47,887 per kg.



"Spot gold prices for 24 carat in Delhi traded up by Rs 477 on rupee depreciation," HDFC Securities Senior Analyst (Commodities) Tapan Patel said. Meanwhile, silver prices rose by Rs 26 to Rs 49,868 per kg.

Globally, gold prices held steady on Friday as downward pressure from a stronger dollar countered rising safe-haven demand supported by gloomy economic projections and renewed fears over a second wave in COVID-19 infections.

Spot gold was flat at $1,727.24 per ounce, as of 1256 GMT. U.S. gold futures fell 0.4 per cent to $1,733.30.

On Wednesday, Fed officials announced the need to keep the key interest rate near zero through at least 2022, and that it would be a "long road" to recovery. Large stimulus measures and low interest rates tend to support gold, which is often considered a hedge against inflation and currency debasement.

Gold has rallied about 19 per cent since touching an over three-month low of $1,450.98 on March 16.

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.5 per cent to 1,135.05 tonnes on Thursday.

Palladium was unchanged at $1,921.22 per ounce, while silver was down 0.4 per cent to $17.64, and platinum rose 0.2 per cent to $812.37.